ATC concludes Viom purchase for Rs 7,635 cr, Srei gets Rs 2,931 cr

“Post-receipt of all regulatory approvals, the process of our stake sale in Viom to ATC has been completed, and we have received the entire consideration,” Srei Vice Chairman Sunil Kanoria said in an official statement Thursday.ET Bureau | Updated: April 22, 2016, 09:21 IST

KOLKATA: Kolkata-based Srei Group has received Rs 2,931 crore after offloading its 18.5% stake in telecom tower firm Viom Networks to American Tower Corp (ATC).

“Post-receipt of all regulatory approvals, the process of our stake sale in Viom to ATC has been completed, and we have received the entire consideration,” Srei Vice Chairman Sunil Kanoria said in an official statement Thursday.

Kanoria, who is also managing director of Viom, said the stake sale proceeds would “lead to substantial cash-inflow into Srei, which would help it “lower debt and reduce interest cost, thereby augmenting capital and improving future profitability”.

Srei’s leverage, he said, would also reduce, “which would be value accretive for both Srei and its shareholders”.

Earlier this month, the Cabinet Committee on Economic Affairs (CCEA) approved ATC’s acquisition of a 51% stake in Viom for over Rs 7600 crore. ATC had announced its plans to buy a 51% stake in Viom last October.

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“There will be a new brand identity — work has started on it,” a senior consultant working on the merged company’s new identity said, speaking on the condition of anonymity due to non-disclosure agreements.